I just racked my Morebeer Light American Ale kit to secondary and it has a very distinct spicy smell like a cross between cinnamon and nutmeg. Is this something contributed by Cascade hops or is it a sign of something wrong?

What yeast did you use? Cascade usually imparts more citrusy notes, not so much spicy ones, but you never know. I'd vote for the yeast as the culprit.

As for whether something is "wrong", that depends on whether you like boring , run-of-the-mill swill, or you like good beer with complexity and interesting characteristics. If you're the latter, then no, nothing is "wrong". If you're the former (or if you just have a severe distaste for cinnamon and/or nutmeg), well, yer outta luck. In that case, I'll be glad to take that beer off your hands for you.